The first step towards your financial journey starts with opening a savings account in your preferred bank. A savings account is typically used to keep your hard-earned money in a safe place while reaping extra benefits. With developing banking systems, the purpose of a savings account has also expanded. Although it is primarily used to provide liquid money to its bearers, it also opens multiple avenues for investment by developing a relationship with the bank. The deregulation of interest rates by the RBI has also led to banks offering higher rates of interest.
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The advancement of banking technology has given rise to increased adoption of opening a savings account with a quick online process. If you want to open a new savings account or already have one, you can expect the following benefits from it:
- Liquidity and Safety
The primary utility of a savings account is to provide liquidity on the cash deposited in it. You have complete access to its withdrawal and deposit processes. When you open a savings account, the bank provides you with an ATM card, which you can use to make various transactions both online and offline. Since the Reserve Bank of India (RBI) has strict safety regulations for a savings account, you can stay assured of your money’s safety in the bank. Some bank deposits also offer insurance with a savings account.
- Transaction Facility
A savings account comes with multiple facilities. You can make an online transaction through various avenues such as online/mobile banking and by using the ATM debit card provided by the bank. Apart from making these transactions, you can also create fixed and recurring deposits or transfer funds with the help of cheques or online banking.
- Loan Facility
A savings account helps build a relationship with the bank, which you can leverage later to take a loan. Since your transaction history is available with the bank, it becomes easier to apply for a loan and its approval. Both you and your bank have access to your transaction history to make the process quick.
- Bill Payments
As a savings account works as a cash management system, you can make bill payments towards your expenses seamlessly. Most online banking portals offer a quick review on the dashboard of your account for various transactions made in the past, current assets and liabilities, and similar others. Some banks also let you set up auto-recurring payments and UPI payments, which you can use as per your convenience.
- Tax Compliance
The transaction history of a savings account keeps every record of the inflow and outflow of money across the year or any specific month. Therefore, the funding of assets can be easily traced. Your annual or monthly savings account statement provides a record of income earned and expenses carried, making it an essential document for tax compliance.
- Opens Investment Avenues
A savings account forms the base to open a trading and Demat account for diversifying investments. You can invest in multiple avenues such as PPF, SIP, insurance, and other securities through online banking. In other words, it helps generate another source of income.
Develop a Banking Relationship by Opening a Savings Account
A person above the age of 18 is eligible for opening an independent savings account. Many banks nowadays also offer facilities for opening an account for those younger than 18 too. Also, the process of opening an account has become easy with the option to apply online.
Although savings accounts from different banks look the same at a glance, they differ in various aspects such as rate of interest, ease of online banking, customer support, service charges, and minimum balance maintenance. Axis bank in India has built a reputation by providing excellent services in all avenues. They have a wide range of savings account with multiple benefits and features, which are designed to meet the requirements of people from all walks of life. So, start saving for your future today by opening a Savings Account in a renowned bank.